In a recent report from the Tax Foundation, it was found that for every $100 spent, New Yorkers are only getting $86.51 worth of everyday goods.
“Regional price differences are strikingly large; real purchasing power is 34 percent greater in Mississippi than it is in New York,” according to the report. “In other words, by this measure, if you have $50,000 in after-tax income in Mississippi, you would need after-tax earnings of $67,000 in New York just to afford the same overall standard of living.”
While expensive living might not shock you when it comes to the metropolitan area of New York, these numbers speak for the state as a whole. This means small businesses across New York need to worry about what policies could change to make up for the lack of purchase power.
“This has substantial implications for public policy, which is often progressive with respect to income. Many policies–like minimum wage, public benefits, and tax brackets–are denominated in dollars. But with different price levels in each state, the amounts aren’t equivalent in purchasing power,” according to the Tax Foundation.
Other states/areas with low purchase power included: Hawaii ($84.46), the District of Columbia ($86.28), California ($87.41), and New Jersey ($88.34).